ERC Made Simple
Claiming the ERC credit doesn't have to be difficult, we're here to make sure your business gets the money it deserves.
I'm a CPA or payroll company, can I refer my clients to ERC Specialists?
Yes. We also offer a referral/affiliate program. To learn more contact us.
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My revenue went up in 2020. Can I still qualify for the ERC program?
Yes! There are two possible qualifications for 2020 & 2021: revenue reduction or a "full or partial shutdown of your business due to COVID-19". Specifically, the IRS describes this as "A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel, or restrictions of group meetings." Below are several examples of qualifying events:
Example 1: A restaurant must close or limit its on-site dining. Such as having to close down every other table due to COVID-19 restrictions.
Example 2: A business needs to meet with clients in person and has to cancel meetings due to COVID-19 restrictions.
Example 3: A business has to reduce operating hours because of COVID-19 restrictions and cleaning requirements.
Example 4: A business had delayed production timelines caused by supply chain disruptions.
Example 5: A business with a planned event has to cancel that event or restrict the number of attendees due to COVID-19 restrictions.
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Can't I just have my CPA file? Why would I use ERC Specialists?
Of course. The challenge is the ERC credit is taken on your payroll returns and not through your business income tax returns, which is what most CPA's handle. Because of this most CPA's don't process this credit, unless they process your payroll in house. This is also a big reason why this credit is so underutilized. Since CPA's don't typically handle it and they are the tax experts, it has mostly fallen in a middle ground where few are able to effectively process the credit. Interestingly, we receive a large portion of our clients from CPA's.
At ERC Specialists we have decades of payroll experience, which has allowed us to specifically focus to understanding and maximizing the ERC program. In our experience we have found that due to the complexity (the ERC tax code is over 200 pages) and time investment necessary to understand the ERC program, very few are able to effectively maximize this sizeable credit for your business.
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How much do you charge?
We charge a flat fee for our services based on the amount of employees that qualify for the ERC. This is in alignment with how the IRS requires tax consultants and preparers to charge for services. We calculate and provide our fee with our free analysis. Since we are typically able to recover 10-20% more than someone less familiar with the program, our fee is very affordable. Just like a good CPA, using the right team for this process pays for itself.
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Can I get ERC funds if I already took the PPP?
Yes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, modified the ERC credit rules. One of the modifications included allowing a company to have a PPP loan and still take advantage of the ERC credit. However, you can't use the same dollar-for-dollar funds. We take this into account when processing your ERC credit.
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Do I have to repay the ERC credit?
No. This is not a loan. It's a refundable tax credit. When we file your ERC claim we request a refund check for you.
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In December 2020 and March 2021, the Consolidated Appropriations Act and the American Rescue Plan Act were signed, providing added COVID-19 relief packages for companies. Specifically, this new legislation amends, extends, and magnifies the CARES Act Employee Retention Credit (ERC).
The ERC was not an option if a company received Paycheck Protection Program (PPP) loans through the SBA.
The new changes allow for a retroactive amendment to March 13, 2020. These businesses are now eligible to receive the ERC (not on wages paid with PPP loan funds).
Additional notable changes to the ERC include:
• Extension of ERC for the entire year of 2021.
• Increased limits on per-employee wages from $10,000 for the year to $10,000 for each quarter in ‘21.
• Max credit increased = $33,000 ($5,000 | 2020 + $7,000 | Q1 2021 + $7,000 | Q2 2021 + $7,000 | Q3 2021 + $7,000 | 4Q 2021).
• An increase from 50% (up to $10,000) of qualified annual wages to 70% (up to $10,000) of qualified quarterly wages starting January 1, 2021, through December 31, 2021.
• Benefits increased for companies up to 500 employees.
• Hospitals and Public universities are now considered eligible.
• Companies that received PPP loans are now eligible to receive ERC.
The employer’s portion of employment taxes (e.g., Social Security and Railroad Retirement) can be claimed under the ERC. If the credit surpasses the amount due, it is handled as an overpayment and is refundable.
Learn more at https://ercmadesimple.com
If your business was negatively impacted by COVID-19, you might qualify for a little-known tax credit under the Cares Act called the ERC (Employee Retention Credit).
Most businesses received the PPP but not the ERC.
ERC Made Simple makes it extremely easy to start the process. It only takes about 10 minutes to apply.
Your business could be leaving thousands of dollars on the table by not applying.
Start Qualifying Claiming the ERC tax credit shouldn't be hard, we can do it for you